press release

Texaco Press Release - Texaco Announces $4.5 Billion Capital and Exploratoryspending Plan for 2001

FOR RELEASE: THURSDAY, JANUARY 18, 2001

WHITE PLAINS, NY, Jan. 18 - Texaco announced today the company's $4.5 billion capital and exploratory (CAPEX) spending plan for the year 2001. The 2001 CAPEX plan represents a slight increase over 2000 spending, which was ten percent higher than 1999 levels. Approximately $2.9 billion will be spent in international areas and $1.6 billion in the United States. On a segmented basis, 65 percent of the spending will be for upstream opportunities, 24 percent for downstream businesses, and 11 percent for gas and power and other.

Texaco's CAPEX plan, which includes subsidiaries and affiliates, calls for the continued focus on high impact upstream projects in Nigeria, Venezuela, the Philippines and Kazakhstan.

The downstream CAPEX plan includes service station and distribution facility expansions and refinery spending for new fuel specifications. CAPEX for global gas and power supports the company's growth in power generation, gasification projects, and new energy technologies.

Note: This press release contains forward-looking statements about Texaco's plans for capital and exploratory spending. These plans may change if business conditions, such as energy prices and world economic conditions, change. For a further discussion of additional factors that could cause actual results to materially differ from those in the forward-looking statements, please refer to the section entitled "Forward-Looking Statements" in Texaco's 1998 Annual Report on Form 10-K.

Updated: January 2001